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G.K. Nair

Kochi , Feb. 17

THE Spices Board has asked the Cardamom Marketing Corporation (CMC) at Vandanmedu in Kerala's Idukki district not to conduct any cardamom auction until further directions from the Board.

The CMC, one of oldest auctioning companies, is allegedly caught in serious financial crisis. As a result, auctions were not being held for the past several weeks during the current season. The current crisis is attributed to mismanagement and diversion of funds to other areas.

Several dealers and the public are said to have invested around Rs 120 crore in the company.

The company's failure to refund deposits to investors exposed the crisis.

The CMC, meanwhile, reported to the Spices Board that some of the dealers had not settled their accounts. The Board, in response, suspended the licences of two dealers. The dealers, on the other hand, claimed that they had settled all the accounts with the CMC and all the payments were made through bank.

Spices Board sources said it was looking in to this issue.

According to official sources, the corporation owes huge amounts to banks and non-banking financial institutions.

Given the current trend, the resumption of auctions by the company seems to be difficult, they added.

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